5 Tax Planning Tips For Families

1. Save Receipts

Every year you should create a new folder in your filing cabinet; to keep all of your tax-related documents and receipts for the year. If you make a habit of collecting these files throughout the year then it will make life easier for you and your families to come next tax season. To know more about taxes you can also browse to https://aguideforyour20s.com/wealth/taxes/

2. Stay Current on Recent Tax Laws

If you are serious about tax planning for your family then you want to make sure you understand the current set of tax laws. It is important to make sure you are keeping the true receipts, preparing for the right deductions, and making smart purchases.

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3. College Tax Credits

Speaking of recent tax law changes, President Obama recently extended the college tax credit. If you have any children attending college this year then you will want to make sure and claim the new credit. The maximum amount for the credit was raised to $2,500, and can now be claimed for up to 4 years.

4. Health Care Deductions

If your family's medical bills exceed 7.5% of your adjusted gross income then you can deduct them on your tax return. This can be especially useful if you have a newborn child or a sick family member who needs extra medical attention throughout the year.

5. Employing a Child

If you are the sole proprietor of a business then you might want to consider hiring one of your children. As long as they are under the age of 18, you can them up to $5,000 in wagers per year that will not be subject to income taxes.

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